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Chapter 13Dimensions of Marketing Strategy

Asst. Prof. Dr. Serdar AYAN

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The Marketing Mix

Key to developing marketing strategy•Maintain right mix•satisfy target market•Long-term customer relations

Dimension of value surpassing all others:•Wal-Mart – price•Procter & Gamble – top consumer brands•Domino’s Pizza – distribution via home delivery

Competitive Advantage

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Developing New Products – Multi-step process•Idea development•Screening of new ideas•Business analysis•Product development•Test marketing•Commercialization

Product Strategy

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Test marketing –

a trial mini-launch of a new product in limited areas that represent the potential market.

Product Development

Commercialization –

The full introduction of a complete marketing strategy and the launch of the product for commercial success.

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Classifying Products

Consumer Products•Convenience products•Shopping products•Specialty products

Business Products•Raw materials

•Major equipment•Accessory equipment

•Component parts•Processed materials

•Industrial services

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Product line–Group of closely related products that are treated as a unit because of a similar marketing strategy, production, or end-use

Product Mix – All the products offered by the company

Marketing Mix

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Product Life-Cycle

The Life Cycle of a Product

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Product Life Cycle

45 years of strong sales – Mattel’s Barbie doll’s life cycle is waning. Today, edgier dolls like Bratz dolls give Barbie a run for her money.

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Branding

The Most Valuable Brands in the World

Identifying Products

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Brands

Manufacturer brands – initiated and owned by the manufacturer to identify products from production to point of purchase.

Private distributor brands – cost less than manufacturer brands; owned and controlled by wholesaler or retailer

Generic brands – no brand name often come in simple packages and carry their generic name.

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Packaging

External container holds & describes the product:•Protection•Economy•Convenience•Promotion

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Product Quality

Product quality --Degree to which a good, service, or idea meets the demands and requirements of customers

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Pricing Strategies

New Product PricingPrice skimming Penetration pricing

Psychological Pricing Odd/EvenPrestige pricing

Price DiscountingQuantity discountsSeasonal discountPromotional discounts

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Distribution Strategies

Marketing Channels•Retailers (Wal-Mart, Sears)•Wholesalers (food brokers to restaurants)•E-tailers (Amazon.com)

Physical distribution -- includes all the activities necessary to move products from producers to customers.

–Inventory control–Transportation–Warehousing–Materials handling

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Retailers

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Promotion Strategy

Promotion mix•Advertising•Personal selling•Publicity•Sales promotion

Integrated marketing communicationsThe process of coordinating the promotion mix elements and synchronizing promotion as a unified effort

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Personal Selling

Direct, two-way communication with sellers & potential buyers •Prospecting•Approaching•Presenting•Handling objections•Closing – asking for the order•Following up

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Promotion Strategies: To Push or Pull